GM to invest 4bn euros in Opel and Vauxhall

Dan Akerson in the centre, with Opel executives GM chief Dan Akerson (second from right) has vowed to support his European colleagues

US carmaker General Motors (GM) has said it will invest 4bn euros ($5.2bn; £3.4bn) in its European subsidiary Opel.

Opel, which carries the Vauxhall badge in the UK, has been losing money for 13 years.

This has sparked much speculation that it might be sold.

Instead, GM's chief executive, Dan Akerson, said: "As a global automotive company, GM needs a strong presence in Europe."

"Opel is key to our success and enjoys the full support of its parent company."

Opel is important "in terms of design and development as well as manufacturing and sales", so the US parent company is "fully supportive of the Opel turnaround plan", Mr Akerson said.

However, the fresh investment is not expected to revive Opel's fortunes anytime soon.

Last year, its operating loss rose to $1.8bn, from $700m in 2011, so it could take another couple of years before Opel is back in profit, the company predicted.

Weak car sales across Europe are making Opel's recovery particularly challenging, according to industry observers.

More on This Story

Global Car Industry

The BBC is not responsible for the content of external Internet sites

More Business stories


Features & Analysis

  • Toronto Mayor Rob FordFord nation

    Toronto mayor's enemies unite with him in new battle

  • Tattooed person using tabletRogue ink

    People who lost their jobs because of their tattoos

  • An ant and a humanAnts v humans

    Do all the world's ants really weigh as much as all the humans?

  • Two sphinxes guarding the entrance to the tombTomb mystery

    Secrets of ancient burial site keep Greeks guessing

Elsewhere on the BBC

  • GeoguessrWhere in the world...?

    Think you are a geography expert? Test your knowledge with BBC Travel’s interactive game


  • TokyoThe Travel Show Watch

    Japan has a reputation for being expensive but can you visit without breaking the bank?

BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.